Gold, Silver, Copper Daily Forecast: Precious Metals Bullish Streak Amid Policy Shift Expectations

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Updated: Nov 29, 2023, 09:16 GMT+00:00

Gold's recent rally, with the metal hitting a new high, is driven by dovish Fed signals and a weaker dollar, positioning gold for a test of its upper resistance levels.

The U.S. dollar’s decline to a four-month low enhances gold’s attractiveness.
Gold prices touch a seven-month high, with potential policy shifts fueling the climb.
Silver sees slight retraction from peak within a volatile trading formation.
Copper demonstrates resilience, trading within an upward trend channel

Quick Fundamental Outlook

Gold prices climbed in the latest trading session, hitting their highest point in almost seven months, driven by the anticipation of a potential shift in the Federal Reserve’s monetary policy stance.

The weakening of the U.S. dollar, which touched its lowest in almost four months, alongside the decline in U.S. Treasury yields, with the 10-year note dropping to its lowest in two months, has bolstered the appeal of gold.

This uptick is further supported by investors’ search for safe-haven assets amid the release of critical economic data from the U.S. and China and amid growing worries about a worldwide economic deceleration prompted by recent subdued figures from Japan and the Eurozone.

Gold Prices Forecast

GOLD – Chart

Gold‘s luster continues to intensify in the financial markets, with the spot price slightly retracting to $2,042.01 after touching a new high. The 4-hour chart showcases a remarkable ascent, with the precious metal notching gains and eyeing key resistance levels at $2,056.81 and $2,069.81. Immediate support lies at the $2,009.12 pivot point, which could stabilize price dips.

Technically, the asset’s momentum is underpinned by a Relative Strength Index (RSI) reading of 75, breaching into overbought territory, signaling strong buying pressure. The 50-Day Exponential Moving Average (EMA) at $2,041.81 acts as a dynamic support, aligning closely with current prices to affirm the bullish trend. The price trajectory has also broken above a rising trendline, reinforcing the bullish outlook.

In conclusion, gold’s overall trend remains decisively bullish above the pivot point. Investors are keenly anticipating whether the asset will challenge the resistance at $2,056.81 in the forthcoming sessions, with the potential to explore higher thresholds amid a favorable technical setup.

Silver Prices Forecast

Silver – Chart

Silver’s daily chart presents a compelling narrative, with the metal trading marginally lower at $24.9415, retracing from an intraday peak. The price action is contained within a broadening formation, hinting at increased volatility and potential directional shifts.

Key price levels to monitor include the immediate resistance at $25.0765, a breach of which could prompt a test of the $26.0584 level. Conversely, a pivotal support at $23.5653 underpins the current price, safeguarding against deeper retracements towards the $22.9945 zone.

Technical indicators lend weight to the current consolidation phase. The Relative Strength Index (RSI), at a moderate 70 suggests a market in balance, neither overbought nor oversold. Observing the 50-Day Exponential Moving Average (EMA), which is presently at $24.2957, we find the price snugly above this line, suggesting the underlying bullish sentiment remains intact.

The chart reveals a symmetrical triangle pattern, typically a continuation pattern, hinting that the prevailing trend may resume. In summary, the precious metal’s trajectory is cautiously optimistic above the 50 EMA. A sustained climb above $25.0765 could see silver’s shine intensify, with bulls targeting resistance levels north of $26.

Copper Prices Forecast

Copper – Chart

Copper prices are exhibiting a slight pullback in the 4-hour chart, currently trading around $3.84258. The commodity has shown resilience, maintaining its position within an upward channel that suggests a bullish trend.

Key technical levels for traders to watch include a pivot point at $3.79284, which copper is currently trading above, indicating strength. Immediate resistance is found near $3.85628, and surpassing this could lead the metal towards the next resistance levels at $3.89496 and $3.94091.

The Relative Strength Index (RSI) stands at a healthy 61.77, suggesting momentum is with the bulls, but not yet in overbought territory. The price hovers above the 50-Day Exponential Moving Average (EMA), currently at $3.74931, signaling a bullish market sentiment in the short term.

The observed chart patterns and technical indicators align to forecast a continuation of the upward trend. In conclusion, the current trend for copper appears to be bullish, with potential for further gains if it breaks through the immediate resistance.

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About the Author

Arslan Aliauthor

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.